Roswell Public Facilities Authority (PFA) Meeting
Video Transcript
Duration: 13 minutes
Speakers: 4
You
wanna read a resolution, or do do you what what do you wanna do about the,
the audio?
Alright.
We live? We good?
So, Christine, we we're still missing Will or is he on as well?
Alright. So we have a we have a forum. Yeah. We have a forum.
Christine, can you hear us?
Yep. I can hear you guys just fine. Perfect. Thank you. I can see most of your most of you and the there we go. Much better. Thank you. Great.
Alright.
Let's call the, PFA meeting to order.
I'm gonna do a quick roll call. Christine Hall?
Here. Lee Hills? Here.
Sarah Deason? Here.
Joe Cusack? Here. And I'm Alan Sales, chair in the meeting.
Others are, on en route. So we already have a quorum. We're gonna get started and Will Morton will be joining us as soon as he can. So the first order of business is the oh, to approve the or to authorize the,
joining by phone as long as the public can hear and the recording can be made.
So is there anything I need to do specifically around that other than just to simply say that the chair authorizes that?
I think the the chair has authorized
Christine Hall to join via Zoom. The meeting is open to the public. She can be heard by the general public, and we can all hear her. Brilliant. Thank you. Alright.
Which is accordance with the bylaws of the PFA, which was adopted at the last meeting. Very good. Thank you, sir.
Yeah. Alright. If we could, have,
does anybody have any comments or questions about the minutes from the last meeting that was at lightning speed?
Let's do it again.
Alright. Do I have a motion to accept the minutes to approve the minutes from the 07/15/2025
PFA meeting?
Second.
All in favor, say aye.
Aye. Aye. Aye. And raise your hand.
That's an Allen thing.
Sorry. Just for the sake of meeting. Thank you. This is, I believe, only an audio recording for a meeting. So for the sake of audio,
make sure that you recognize the motion or who in this case Alright. So Sarah Besen made the the motion and and seconded by Lee Hills. Thank you.
Alright.
Onto the regular agenda, I will turn to,
CFO Bill Godshaw to take us through the offering
information in this agenda in this agenda item. Thank you.
Joining me is mister Woodard of the blockhouse.
Your mic is not on there.
Your mic. Good. Alright. So if we can Don't let me try again. Let's try
So I want to welcome, our bond counsel, Jim Woodward, is joining us in case we have any specific questions related to the underlying resolution,
the bond documents or the, the lease IGA that we'll be discussing briefly.
The purpose of the resolution
is to approve the issuance of, PFA revenue bonds, series twenty twenty five at a principal amount of $10,000,000
those proceeds will be used to finance the acquisition of,
that will be the subject of the project for the PFA.
It'll also pay for the cost of issuing,
the bond, and then there will be,
architecture design
and pre planning costs incurred,
also part of the project funds,
being financed by the bond.
We began an RFP process,
on July 10, trying, first try it on advisors, our investment advisors
circulated on behalf of the city and the authority,
58 RFPs to,
banks, that are local, regional, and national,
to solicit interest in, in the project.
The RFP requested that the banks make proposals for financing
unauthorized terms for both fifteen and twenty years.
On July 30, the city authority received six proposals,
which is summarized in the following slide.
We're not even on the apologize.
Yeah. That's it for now. Yeah.
It's a little bigger than I wanted.
Okay.
So,
on July 30, we received, six responses.
After reviewing those responses,
with, both internal staff, bond counsel, and TRION Advisors,
the recommendation is to proceed with a twenty year proposal from Webster Bank.
This is due to three primary factors. The first being that on a cash basis, we'll have an annual savings over the best fifteen year option
of about $130,000
year over year.
We have prepayment flexibility beginning in 2029.
This slides to zero penalty in a seven year window.
And then we have a firm rate through Webster without the need for any type of interest rate lock agreement, I. E. A derivative
or any other type of interest rate risk during the period of the bond or the pre closing period.
These are the offers that were submitted,
by the various banks. I know it's probably a little small to see.
The rate offered by Webster is 4.5%,
4.535%
for a twenty year period
is a level payment. Think of it in terms of, like, a fixed mortgage, right, where our interest rate will not go up and it will be amortized
on
a straight line basis over the twenty year period. We have prepayment options that begin in 2029
and by 2023, there's no penalties associated with those prepayment options. So if better rates come along or we want to do something different with our cash flow, we have,
economical options available to us in the near term in the midterm.
Other options required make whole provisions,
if we were to pay off early. So that means that if interest rates had fallen in the period that would normally induce us to refinance,
we'd have to pay that penalty, if you will,
to pay out early. And so there would be no benefit to the city in that situation to pay off early because you'd only do that if you have better rates available.
That
I'd like to recognize that,
Will Moreland has joined the PFA
meeting.
Thank you.
So we felt those difference in terms, both five years shorter duration, and prepayment penalties,
streams will look like in the amortization period.
We expect the loan to close on September 11, which will give the city time to close on the sprawl project, which is, I believe, a September
27
or twenty eighth deadline. So this will give us adequate time to proceed with closing on the property.
Loan amount will be 10,000,000. As stated, the rate is 4.535.
Another key feature is our first payment will not be until 09/01/2026.
So this will not have a budget impact in the remaining 2025 fiscal year.
It's a level debt service, which means that we pay a fixed payment,
for the most part, centered right around $770,000
per year. It's a onetime payment,
payable on the anniversary,
September 1.
We've also looked at the effects of,
refinancing the loan,
at various stages,
at both 102%,
101100%.
If we were to wait to the first year that we have no prepayment penalty,
we will be able to pay the loan, in,
I believe, 2023.
And the net effect that would have to interest would be to raise the interest rate for 4.5%
to 4.6%
because of the slow
the onetime payment associated with an early payoff at year seven.
So that would be the benchmark that we would look at if we were decide to refi it, no penalty.
Next steps. I'm sorry.
So,
so the next steps for I'm sorry.
Okay. The next steps,
so we will need to approve the authorization to enter into the bonds and then there's also a lease intergovernment
agreement
between a PFA and a city. And what that will do is create a payment stream from the city to the PFA to service the debt. There'll be no premium or discount in that payment stream. It'll be dollar per dollar
and Jim and team are working through finalizing those documents right now, but the framework is structured and consistent with other IGAs that we've done.
And so that would be that would also be
approved in connection with approving item number two. After that,
bond validation process through Fulton County Court,
so that the the bonds are considered
legitimate,
government to know that it's already been
through the validation process and there's no future legal challenges that could arise.
So that's one of the reasons we're on a bit of a compressed timeline
from start to finish is the validation process takes approximately forty five days.
That's the circumstances maybe we could shave a day or two off of that, but it is full of county's process that the court system goes through.
So with that, I'm happy to take take any
questions. Thank you. See if I've got y'all. Any questions from the EFA?
Comments?
Yes, ma'am. Miss Hills.
Bill, you and I talked about this a little bit, but this does not impose any any new, expenses on our taxpayers. Correct?
That's correct. We are not,
increasing the millage,
either maintenance and operation or debt service in 2025 for this.
Alright. Any other questions?
So,
somebody want to read this and make a motion to, approve the
item, the resolution?
Thank you, Lee.
A motion to approve the resolution of the City of Roswell Public Facilities Authority providing for, number one, the issuance of its revenue bond series 2025
in the principal amount of $10,000,000
in order to provide funds to a, letter a, finance the cost of acquiring land for parks and recreation, including architecture, design, and engineering costs for the city of Roswell and letter b, pay the cost of issuing the series
twenty twenty five bond issued here under, and number two, the approval of an inter intergovernmental lease agreement, IGA, with the City of Roswell.
Thank you for that motion. Do I have a second? Second. Second by,
Will Morflin. All in favor, please designate by
saying
aye. Aye. Aye. Any opposed,
there being none. Motion carries unanimously.
Is there anything any other business that anyone needs to bring forward for the PFA? Yes, sir. Mr.
Wood. Is the secretary present? I'm not sure who your secretary is. Oh, you're secretary? Okay. Great. Alright. Good. Alright. Perfect. Thank you. I'll just need a secretary who would appoint an assistant, secretary if you hadn't, you weren't here. Thanks. Thank
you. Do I have a motion to adjourn this, this meeting? A motion by Sarah Beeson, second by Lee Hills. All in favor, say aye. Aye.
Aye.
That being unanimous as well, this, meeting of the PFA for,
August 7 is adjourned.
Thanks, Christina. Thank you. Thanks for accommodating.